No Fault Auto Insurance in Utah

In the United States, auto insurance laws are handled at the state level, which means that each state can be a no-fault state, an at-fault state, or some combination. Utah happens to be one of the 12 no-fault states, which means that all drivers are required to carry insurance to cover at least some of the injuries and damages they sustain in an automobile incident. Regardless of who was at fault in the crash, since Utah is a no-fault state, everyone involved files a claim with their own insurance. In other fault or tort states, liability has to be determined before medical bills get paid, then the person liable for the damage is responsible for the medical expenses.

According to an article from the Insurance Information Institute, no-fault auto insurance legislation was introduced in the 1970s in hopes of avoiding the hassle of determining which driver is responsible before medical bills can be paid.

Utah no-fault state

Certain rules must be followed in a lawsuit regarding an auto accident in Utah. These rules are sometimes referred to as “threshold conditions.”

In Utah, drivers are required to have personal injury protection (PIP) Insurance, which can pay for medical bills, lost income, and some other expenses after an accident —up to the limit of the policy’s PIP coverage. PIP can pay for the policyholder’s expenses regardless of who was at fault in the collision. PIP  coverage does not, however, take care of damages to the car – property damage is assigned to whoever is later determined to be at fault.

Utah requires all drivers to have at least $3,000 of PIP insurance. PIP coverage can provide money to be used toward medical expenses; death benefits if someone was killed in the incident; lost income due to injuries sustained in the crash; and certain other expenses.

What Utah requires every driver to carry

PIP is only one piece of the mandatory policy. Under Utah Code 31A-22-304 and 31A-22-307, every Utah auto policy must include:

• Bodily injury liability of $30,000 per person and $65,000 per accident, which pays the people you injure.
• Property damage liability of $25,000, which pays for the other driver’s car.
• Personal Injury Protection of $3,000 in medical benefits, plus income replacement of 85 percent of lost gross income up to $250 a week for 52 weeks, $20 a day for household services for up to 365 days, $1,500 in funeral benefits, and a $3,000 survivor benefit.

Uninsured and underinsured motorist coverage is not required, but insurers must offer it, and you can only decline it in writing under 31A-22-305. Most Utah drivers have it without realizing it, and it is the coverage that matters most when the driver who hit you carries only the minimum.

How much does PIP insurance cost in Utah?

Utah no-fault state

The cost of PIP insurance in Utah is based on the amount of coverage, the city you live in, your driving record, and other factors. It is important to note that income loss protection is not required, and waiving it can reduce your premiums. This option is only available, though, if you haven’t been employed for at least 31 days before purchasing coverage and 180 days after purchase.

PIP is inexpensive relative to what it covers. Raising the medical limit from the $3,000 minimum to $10,000 or more usually adds only a few dollars a month, and it is the coverage that pays your bills in the weeks before fault is settled. Ask your agent for a quote at several limits; the price depends on your record, your ZIP code, and your carrier.

Since Utah requires drivers to carry PIP insurance, it also restricts drivers’ ability to sue the opposing party in a crash unless damages reach a certain threshold. To sue the other party for damages received in a collision, at least one of the following must be met:

• Injuries resulting in more than $3,000 in reasonable and necessary medical expenses
• Someone died in the incident
• A person was dismembered or disfigured in the incident
• There were injuries that resulted in permanent impairment or a disability

For more information about PIP insurance, call Moxie Law Group, an experienced personal injury firm in Utah at 801-405-3650.

Utah No-Fault Insurance FAQs

Q. What legally qualifies as a “no-fault” state for car accidents in Utah?

A. Being a no-fault state means that after a car accident, your own insurance company is responsible for paying a portion of your medical expenses and certain out-of-pocket losses, regardless of who caused the crash. This coverage is provided through Personal Injury Protection (PIP), which is a mandatory component of auto insurance policies in Utah. The goal is to ensure that injured parties receive immediate medical attention without waiting for a lengthy investigation into liability.

For county-by-county crash and death figures, causes, and year-by-year trends, see our Utah car accident statistics page.

Q. Does Utah’s no-fault law apply to vehicle repairs and property damage?

A. No. Utah’s no-fault rules apply specifically to bodily injury and medical-related expenses. When it comes to property damage—such as repairs to your car or the replacement of a totaled vehicle—the at-fault driver’s insurance is still responsible for the costs. You can file a claim against the other driver’s property damage liability coverage immediately following an accident to recover these costs.

Q. When am I allowed to sue the at-fault driver in Utah?

A. You can step outside of the no-fault system and file a personal injury lawsuit against the negligent driver if your case meets certain “thresholds.” In Utah, you can pursue a claim for non-economic damages (like pain and suffering) if your medical expenses exceed $3,000 or if the accident resulted in permanent impairment, permanent disfigurement, or death. Once this threshold is met, you are no longer limited to just PIP benefits.

Q. What exactly does Personal Injury Protection (PIP) cover?

A. In Utah, the minimum PIP coverage is $3,000 per person. This typically covers medical bills, 85% of lost wages (up to $250 per week for as long as 52 weeks), and a daily allowance for household services you can no longer perform, such as cleaning or yard work. It can also cover funeral expenses in the event of a fatality. Many drivers choose to purchase higher PIP limits to ensure they are better protected.

Q. Why do I need a lawyer if my insurance is supposed to pay regardless of fault?

A. While PIP provides a safety net, $3,000 rarely covers the full cost of a serious injury. Insurance adjusters may also attempt to prematurely cut off your benefits or argue that certain treatments aren’t “medically necessary.” A personal injury lawyer ensures your PIP benefits are fully utilized and determines if your injuries meet the legal threshold to pursue a larger settlement from the at-fault party’s insurance for your total losses.

Sources: Utah Insurance Department: third-party auto claims